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VUL Insurance Philippines – How Does A VUL Work? [2023]

Not sure what a VUL insurance in the Philippines is? Or do you want to know how does VUL insurance work?

You’re in the right page.

Today, we’ll talk about VUL insurance in the Philippines so you can decide for yourself if it’s a good investment or not.

Let’s dive right in.

What is a Variable Unit-Linked VUL Life Insurance?

Let’s find out what VUL insurance means by looking at its name: Variable Unit-Linked.


  • The premium varies.

Premium is the amount you pay for this plan. It depends on the coverage you need and on the yearly budget you can set aside for your VUL insurance plan.

  • The payment time period varies. It depends on you, too. For example, you can choose to pay for your VUL insurance plan for 5, 10, 15 or 20 years.
  • In VULs, you get a guaranteed protection benefit (life insurance) and a variable investment amount.
  • Variable investment amount: since VULs have investment components, the investment scheme is similar to how mutual funds/UITFs work. Their returns aren’t guaranteed –- this is a universal rule in investment because sometimes you may incur losses, sometimes you may have huge gains.

Historically speaking, though, for example if you invested in a balanced fund and held it for the long-term, an annual interest of 6%-8% was observed.


VULs are life insurance products with an investment component.

  • Your investment portion buys units in the investment type that you choose (bond, balanced or equity). When unit prices increase in value, your money appreciates and your investment fund value increases over time, too.
  • VUL’s investment portion is managed by professional fund managers. If you don’t have the time, knowledge, patience and expertise to invest directly, this is suitable for you.

To manage the risk:
– Choose a reputable company to open your VUL plan with.
– Invest in the investment type that matches your time horizon, risk appetite and financial status. Generally, investing for the long-term can give you higher potential returns that beat inflation.

Life Insurance

  • Guaranteed protection benefit: Upon death, upon total disability, upon critical illness, or upon hospitalization, a guaranteed amount will be given to you or to your dependents.

All in all, a VUL plan like Sun Maxilink Prime helps you protect your loved ones -– in case something happens to you –- and helps you prepare for your retirement – in case you live “too long”.

VUL Insurance in the Philippines Myths

When I was still a financial advisor, I realized that some people may not be fans of VULs because of common life insurance myths.

Let’s clarify some of them:

1st, Life insurance isn’t supposed to make you poor.

You’re only supposed to deposit the amount that you can conveniently afford.

After all, you also need to put money towards your savings account every month, right?

2nd, You get life insurance so that your dependents are still financially protected in case you’re gone.

A VUL insurance is not meant to insure your life.

It’s meant to replace your income in the event that you pass away and can’t provide for your dependents anymore.

3rd, There’s already a life insurance product that has an investment component.

Gone are the days when life insurance is just about solving the problem of “dying too young”.

Now, life insurance can also address the problem of “living too long” or investing for your retirement through the use of VUL life insurance.

1 thought on “VUL Insurance Philippines – How Does A VUL Work? [2023]”

  1. Pingback: Sun Maxilink Prime - Is It The BEST VUL Plan For Pinoys?

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